ENHANCING debt transparency and strengthening public financial management can help reduce borrowing costs and unlock innovative financing, IMF now says, even as it projects a steady 4.1 per cent growth for Sub-Saharan Africa.
This, amid ongoing discussions with authorities for a potential funding programme for Kenya that could include a lending component and anchoring of external debt repayments.
According to IMF, publishing comprehensive debt data and reinforcing budget oversight are key steps forward.
“These priorities are critical for building resilience and supporting inclusive, sustainable growth across sub-Saharan Africa,” said Abebe Selassie, director of the African department, at the 2025 Annual Meetings in Washington DC.
The 2025 Annual Meetings of the World Bank Group and the International Monetary Fund ran between October 13 andOctober 18.
“External financing terms have improved somewhat, allowing a few countries, notably Kenya and Angola most recently, to access international capital markets,” Selassie noted.
Kenya’s debt stood at Sh11.8 trillion as at June 2025, Central Bank of Kenya data shows, which was up compared to Sh10.6 trillion in June last year. This comprised Sh6.3 trillion in domestic debt and Sh5.5 trillion borrowed externally.
During his budget speech in June, Treasury CS John Mbadi noted that Kenyans had expressed concerns about the public debt, as he called for a comprehensive audit.
“Indeed, there is a perception of lack of transparency in the management of public debt. In this regard, I requested the Auditor General to conduct a comprehensive audit of public debt. This audit is currently ongoing andonce completed, the report will be shared with this House,” Mbadi said in Parliament.
Mbadi said the debt carrying capacity had narrowedhence the need for prudence and discipline on how the country manages and takes new debt.
The 2025-26 budget outlined a plan to borrow Sh287.7 billion externally and Sh635.5 billion from the domestic market to fill the budget deficit in the Sh4.3 trillion spending plan.
The country could get a new funding programme from IMF which conducted a staff visit to Kenya between September 25 to October 9, with the IMF giving positive feedback, albeit continued reviews and discussion that were extended to Washington this week.
Purpose of the team visit, led by the mission chief for Kenya Haimanot Teferra, was to assess Kenya’s current economic situation and initiate discussions on the government’s forward-looking policies and strategy, that could be supported through an IMF programme.
The team held meetings with President William Ruto, Treasury CS John Mbadi, Central Bank of Kenya governor Kamau Thugge and their respective teams.
Teferra’s team also engaged members of Parliament, officials from various government agencies and representatives from civil society organisations, private businesses, the financial sector and development partners.
“The IMF staff team made progress in taking stock of the latest macroeconomic and financial sector developments, assessing the economic outlook, and holding initial discussions with the Kenyan authorities and other stakeholders on a reform agenda that could pave the way for an IMF-supported programme,” Teferra said in a statement on Friday.
The policy priorities include measures to enhance fiscal policy credibility, ensure sustainability of public finances and debt and minimie fiscal, financial and external sector risks as well as ways to enhance governance, transparency and efficiency in the public sector.
“The team will return to Washington, D.C. to further its technical work. The discussions with the authorities will continue during the IMF Annual Meetings,” Teferra had said.
“We welcome the Kenyan authorities’ candid engagement and remain steadfast in our commitment to partnering with Kenya to secure a more robust, sustainable and inclusive economic future for all Kenyans.”
Kenya and the IMF abandoned the final review of its last programme in March, with the government not receiving the final tranche of its Extended Fund Facility and Extended Credit Facility, worth $800 million (Sh103.3 billion).
The initial $3.6 billion (Sh465 billion) programme with the IMF expired in April.
Central Bank of Kenya governor Kamau Thugge had earlier indicated the country was keen to secure another facility, which would help advance the Bottom-Up Economic Transformation Agenda (BETA) and align with the Kenya Kwanza government’s priority projects.
Comments 0
Sign in to join the conversation
Sign In Create AccountNo comments yet. Be the first to share your thoughts!